scholarly journals Do Vertical Mergers Facilitate Upstream Collusion?

2007 ◽  
Vol 97 (4) ◽  
pp. 1321-1339 ◽  
Author(s):  
Volker Nocke ◽  
Lucy White
Keyword(s):  
Vertical Integration ◽  
Repeated Game ◽  
Punishment Phase ◽  
Vertical Mergers ◽  
The Impact

We investigate the impact of vertical mergers on upstream firms' ability to collude when selling to downstream firms in a repeated game. We show that vertical mergers give rise to an outlets effect: the deviation profits of cheating unintegrated firms are reduced as these firms can no longer profitably sell to the downstream affiliates of their integrated rivals. Vertical mergers also result in an opposing punishment effect: integrated firms typically make more profit in the punishment phase than unintegrated upstream firms. The net result of these effects in an unintegrated industry is to facilitate upstream collusion. We provide conditions under which further vertical integration also facilitates collusion. (JEL D43, G34, L12, L13)

scholarly journals The Competitive Impact of Vertical Integration by Multiproduct Firms

2020 ◽  
Vol 110 (7) ◽  
pp. 2041-2064 ◽  
Author(s):  
Fernando Luco ◽  
Guillermo Marshall
Keyword(s):  
Vertical Integration ◽  
Price Increases ◽  
Beverage Industry ◽  
The Us ◽  
Carbonated Beverage ◽  
Vertical Mergers ◽  
Recent Variation ◽  
The Impact ◽  
New Evidence ◽  
Do So

We study the impact of vertical integration on pricing incentives in multiproduct industries. To do so, we exploit recent variation in vertical structure in the US carbonated-beverage industry. While the elimination of double marginalization with vertical integration is normally characterized as procompetitive, economic theory predicts that it may cause anticompetitive price increases in multiproduct industries. We indeed find that vertical integration causes price decreases in products with eliminated double margins but price increases in the other products sold by the integrated firm. These results provide new evidence of anticompetitive effects of vertical mergers. (JEL D22, D43, G34, L13, L22, L66)

The Impact of Structural Reforms and Regulations on the Demand Side in the Railway Industry

2019 ◽  
Vol 18 (1) ◽  
pp. 1-33
Author(s):  
Fumitoshi Mizutani
Keyword(s):  
Market Structure ◽  
Vertical Integration ◽  
High Speed ◽  
Fixed Effect Model ◽  
Structural Reform ◽  
Estimation Methods ◽  
Public Ownership ◽  
Estimation Model ◽  
Passenger Demand ◽  
The Impact

Abstract The main purpose of this study is to evaluate factors affecting passenger rail demand, with special attention to the effects of structural reform/regulation and competition. In order to do this, we use data obtained from 30 OECD countries for the 24 years from 1990 to 2013. As structural reform/regulation and competition variables, we take the OECD’s five kinds of regulatory indices: (i) overall, (ii) entry, (iii) public ownership, (iv) vertical integration, and (v) market structure; and for competition variables, we take (vi) rail passenger-freight ratio, (vii) rail share, and (viii) high-speed train ratio. As estimation methods, both the fixed effect model and the Hausman-Taylor estimation model are used. The major findings are as follows. First, competition as competitiveness (i.e. the share of rail, passenger over freight ratio) increases passenger demand. And the existence of high-speed trains increases passenger demand. Second, overall, entry regulation, and market structure have no significant effect on demand. Third, public ownership affects passenger demand positively. Last, vertical integration reduces passenger demand.

Analyzing the post-harvest supply chain enablers of vertical integration for rural employability and marketability

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rahul Priyadarshi ◽  
Srikanta Routroy ◽  
Girish Kant
Keyword(s):  
Factor Analysis ◽  
Supply Chain ◽  
Vertical Integration ◽  
Rural Areas ◽  
Structural Equation ◽  
Equation Modeling ◽  
Value Addition ◽  
Content Type ◽  
Post Harvest ◽  
The Impact

Purpose The purpose of this study is to analyze the post-harvest supply chain enablers (PHSCEs) for vertical integration to enhance rural employability, farmer profitability and rural produce marketability (i.e. market prospects) in the post-harvest supply chain (PHSC). The impact of vertical integration is also explored for various commercial produces. Design/methodology/approach A structural equation modeling (SEM) of PHSCEs for vertical integration was developed to enhance market prospects, rural employability and farmer profitability. The impact of business-to-business (B2B) and business-to-customer market prospects are explored in various dimensions for stakeholders such as farmers, manufacturers (processors), distributors and retailers. The fuzzy technique for order of preference by similarity to ideal solution (F-TOPSIS) was used to prioritize these PHSCEs to improve market prospects and rural employability. Findings The PHSCEs are clustered into three groups, namely, initiatives at the strategic frontier, initiatives at the tactical frontier and concerns for rural employability via vertical integration using exploratory factor analysis, confirmatory factor analysis and SEM to prove the null hypothesis. With F-TOPSIS results, the availability of warehousing was found to be the most crucial enabler when observing the PHSCEs from the initiatives’ perspective. The technology adaptability and availability, institute for training and research and information infrastructure and information visibility were found to be the key PHSCEs when observed from PHSC stakeholders’ perspectives. Research limitations/implications The implementation of this study will improve the rural produce marketability, rural employability, B2B marketing (i.e. effective distribution) and subsequent value chains with the practice of vertical integration for fresh produce at the rural level. Practical implications The outcomes of this study have a key role in developing the rural regions and improving rural livelihoods via value addition. The awareness of commercial cultivation and value addition in rural areas needs to be improved. This will help farmers to earn better revenues with improved market prospects in comparison to the revenues obtained from the cultivation of staple/conventional crops. Originality/value In an era of cold chains and food processing, this study aims to disseminate awareness about value addition for commercial and fresh produces at the rural level. The implication of this study will improve rural produce marketability, rural employability and farmer profitability at the rural level with the level of vertical integration.

10. Mergers and acquisitions

2021 ◽  
pp. 106-117
Author(s):  
Ariel Ezrachi
Keyword(s):  
Mergers And Acquisitions ◽  
Market Structure ◽  
Market Power ◽  
Joint Ventures ◽  
Potential Benefit ◽  
Horizontal Mergers ◽  
Administrative System ◽  
The Us ◽  
Vertical Mergers ◽  
The Impact

‘Mergers and acquisitions’ discusses mergers and acquisitions. While of potential benefit to society, mergers, takeovers, share acquisitions, and joint ventures also affect the market structure, and at times may reduce competition. When markets become more concentrated following a merger, we move further away from a competitive market structure to a structure in which market power might undermine the competitive process. To address this risk, the competition agency must assess the impact of the transaction. There are important procedural differences between the European administrative system and the US system in terms of the appraisal of mergers and acquisitions. Other types of mergers include: horizontal mergers, vertical mergers, and conglomerate transactions.

Does Vertical Integration Decrease Prices? Evidence from the Paramount Antitrust Case of 1948

2015 ◽  
Vol 7 (2) ◽  
pp. 162-191 ◽  
Author(s):  
Ricard Gil
Keyword(s):  
Vertical Integration ◽  
Double Marginalization ◽  
Antitrust Case ◽  
Ticket Prices ◽  
The Impact ◽  
Unique Dataset

I empirically examine the impact of the 1948 Paramount antitrust case on ticket prices using a unique dataset collected from Variety magazine issues between 1945 and 1955. With information on prices, revenues, and theater ownership for an unbalanced panel of 393 theaters in 26 cities, I find that vertically integrated theaters charged lower prices and sold more admission tickets than nonintegrated theaters. I also find that the rate at which prices increased in theaters was slower while integrated than after vertical divestiture. These findings together with institutional details are consistent with the prediction that vertical integration lowers prices through the elimination of double marginalization. (JEL G34, K21, L11, L22, L42, L82)

Integrating primary care and cancer care in survivorship: A collaborative approach.

2016 ◽  
Vol 34 (3_suppl) ◽  
pp. 103-103 ◽  
Author(s):  
Jonathan Sussman ◽  
Mary L McBride ◽  
Jeffrey Sisler ◽  
Grace Kim ◽  
Laura Game ◽  
...  
Keyword(s):  
Primary Care ◽  
Vertical Integration ◽  
Cancer Care ◽  
Functional Integration ◽  
Primary Care Providers ◽  
Collaborative Approach ◽  
Survivorship Care ◽  
Care Providers ◽  
Clinical Integration ◽  
The Impact

103 Background: Primary care providers (PCPs) have an important role in the provision of survivorship care. While there is evidence to support the feasibility and safety of PCP-led survivorship care, there are gaps in knowledge about how to best integrate providers to support transitions, enhance quality of care, increase system efficiencies, and improve patient and provider satisfaction. Methods: A pan-Canadian study comprised of three projects has been initiated to address three key aspects of care integration, based on a previously described system performance framework. Functional integration will be studied through the evaluation of electronic survivorship care plans using a prospective cohort of breast and colorectal cancer patients with pre and post measures of knowledge, care coordination, and satisfaction. Vertical integration will be evaluated through a series of descriptive case studies to document structures and processes that are currently in place to support PCP re-referral to regional cancer centres. Clinical integration will be studied through the development and evaluation of an interspecialty survivorship training curriculum for oncology and family medicine trainees. Results: Functional integration: Development of an electronic platform for care plan outputs is complete. Two sites in Ontario (ON) and one in British Columbia (BC) have been selected to study the impact on 200 patients and their providers. Vertical integration: Using a study-specific interview guide, 48 semi-structured key informant interviews have been successfully conducted in ON; 15 interviews are planned for Manitoba (MB) and 15 for BC. Clinical Integration: a National Advisory Committee was established and needs assessments were performed with postgraduate program directors, cancer survivors, and trainees using online surveys and focus groups. A blended learning curriculum is being piloted in MB, ON, and BC in 2015. Conclusions: Integrating primary care and cancer care in survivorship requires a collaborative approach that begins in residency, supports PCPs with clear mechanisms for re-entry, and optimizes communication. This study will inform approaches to enhancing provider integration and survivorship care.

scholarly journals Vertical integration vs. specialization: a nonparametric conditional efficiency estimate for the global semiconductor industry

2021 ◽  
Author(s):  
Guangshun Qiao ◽  
Zhan-ao Wang
Keyword(s):  
Business Model ◽  
Vertical Integration ◽  
Capital Investment ◽  
Business Models ◽  
Semiconductor Industry ◽  
Operating Performance ◽  
Nonparametric Approach ◽  
Second Stage ◽  
Integrated Device ◽  
The Impact

AbstractThis paper applies a two-stage nonparametric approach to compare companies operating in different business models in the global semiconductor industry. Using panel data over 1999–2018 on 470 companies in the global semiconductor industry, we explore the operating performance of the semiconductor companies conditional on capital investment and between the integrated device manufacturers and the fabless-foundry business model. We find that vertically integrated device manufacturers are constrained heavily by capital investment. Disentangling the effects of capital investment and business model by a second-stage nonparametric regression, this paper identifies that the vertically specialized fabless-foundry business model helps to improve pure efficiency and mitigate the impact of business-cycle in the global semiconductor industry.

Impact of Information Systems Implementations on Vertical Mergers and Acquisitions: A Framework

10.28945/2492 ◽  
2002 ◽  
Author(s):  
Nikhil S Gurjar ◽  
Sharadchandra D. Jog ◽  
Manoj K Jha ◽  
S. Amanullah
Keyword(s):  
Information Systems ◽  
Mergers And Acquisitions ◽  
Technology Assessment ◽  
Analytical Framework ◽  
Strategic Options ◽  
Merger And Acquisitions ◽  
Vertical Mergers ◽  
The Impact ◽  
A Company

The present work is an attempt to develop a conceptual framework for evaluating the impact of information systems implementations on Mergers and Acquisitions (referred to as M&A). Although this work focuses on vertical M&A, the framework can easily be extended to horizontal and conglomerate mergers. We begin by attempting to understand what M&A really are. We then move on to understand information systems as we know them today. Thereafter, we classify the nature of businesses from an information perspective. Technology assessment is then carried out on the existing information systems that are implemented in a company. This gives us an understanding of the characterization of the merging entities. We then go about understanding what the strategic options for the companies post merger are. These options are then evaluated to study the impact on the merger. An analytical framework is then developed in two cases that have been considered. Keywords: Merger and Acquisitions (M&A), Information Systems, Information Strategy.

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